Buying House With Illegal Apartment Is Legal

Q-We are considering buying a house in a single-family residence zone which has what the real estate agent calls an "in-law apartment."

He says it doesn't meet the building codes but the $375 monthly rent will help us considerably with the mortgage payment. The tenant also mows the lawn and handles minor repairs.

Is buying such a house illegal?

A-No. So-called in-law apartments, originally built for mothers-in-law, are not legal in most single-family zoned neighborhoods. Many cities, however, don't enforce the law because these illegal apartments provide affordable housing for low-income residents.

As long as you realize a city building inspector could require you to remove kitchen facilities in the in-law apartment, there is nothing illegal about buying a home with an illegal in-law apartment. Please consult your attorney for further details.

Q-About six years ago, while on vacation in Colorado, we fell in love with the beautiful country. We visited a recreational land subdivision and bought a lot for our future retirement. The cost was only $2,500 down and monthly payments of $250, which we have been making faithfully.

Last month, we went to visit "our lot" and were very upset to see how the project has not been developed according to the developer's promises. It is very depressing.

I won't bore you with the details, but there are serious problems. Many of the lots have weathered For Sale signs and the original developer went out of business. Apparently there is no resale market for these lots. We learned many have been taken by the county for unpaid property taxes.

We hate to lose all the money we've invested. Any ideas?

A-Your situation shows what too often happens with promotional land schemes. If you bought the lot for investment, rather than for personal use, it could qualify for an abandonment income tax loss if you can prove there is no resale market and you completely abandon the lot.

As other nearby lot owners have apparently done, you could let the property go for unpaid property taxes to the county. But before you abandon the property, consult your tax adviser and a real estate attorney to be certain abandonment won't incur any income taxes or mortgage deficiency.

Q-Last month I moved out of my apartment when the lease expired. I left it much cleaner than when I moved in. But the building manager said the apartment has to be repainted and the carpets must be cleaned. This will take most of my $500 security deposit which she refuses to refund.

There was no unusual damage to the walls or carpets. The apartment was not painted before I moved in, but the carpets had been shampooed. Do you think I should pay for painting the apartment?

A-No. A tenant is not expected to pay for normal wear and tear. Unless you damaged the walls, it is not your responsibility to repaint the apartment. However, it is often customary for the departing tenant to pay for having the carpets shampooed.

I suggest you write your landlord a nice letter, via certified mail with a return receipt, in care of the building manager demanding refund of your security deposit, minus the cost of carpet shampooing, within 10 days. If you don't receive the refund, take the landlord to small claims or housing court.

Q-Last year, I rented an apartment in an older building because it was the only place I could afford. I knew it was less than the best.

But I didn't expect problems with falling plaster in the bathroom from a water leak in the upstairs apartment, cockroaches, loud noise at night from adjoining apartments, and a nosy manager who enters my apartment without permission during the day when I am at work. Also, it is in a high crime area.

What can I do about these problems, as I can't afford to move?

A-The water leak and cockroaches are health problems which should be reported to your city housing or health department to compel the landlord to take action. The noise and busybody manager are breaches of the landlord's covenant of quiet enjoyment.

But rather than fight your landlord who gives the rental business a bad name, I suggest looking for a better residence in a safe neighborhood which you can afford.

Q-The house where I grew up and where my mom still lives is in a commercial zone which is rapidly being developed. Two houses across the street were recently sold and a small "strip shopping center" will be built there.

Since my mom is getting on in years and is not in the best of health, I am thinking it may not be long before she should move to a retirement home.

Fortunately, our church operates such a home. She received an unsolicited purchase offer for her house, but it doesn't seem like much money, considering the zoning and the new development. Should she sell now or wait?

A-Of course, I can't give advice on a specific transaction. But your mom should obtain a professional appraisal of her property. She might want to even hire two experienced appraisers to get two appraisals because appraising in a changing area is not easy.

Then she will have a factual basis on which to make her decision whether to sell or retain her house. Although you thought that unsolicited offer was low, perhaps it was very good.